Snippet from IEA discussion of UK gas and electricity prices referenced above in my post.
When we turn to electricity prices, the UK is woefully uncompetitive in both industrial and domestic markets with the highest prices among the 28 countries covered by the IEA. This level of price differential is an existential threat to the economy. Moreover, with gas prices around the median level, it cannot be gas that is driving the UK’s electricity prices well above those of international competitors.
Our production cost of solar is similar to Germany's, UK wind generated electricity is substantially cheaper. It must be down to profit and taxation policy. If the grid can take more wind, supported with more batteries, that will drive the the average price down.
Here’s a crisp, like-for-like snapshot of recent utility-scale renewable power costs using the latest public LCOE or auction/contract (CfD/EEG/CRE/PPA) prices. Figures are tech-specific and shown in the currency used by each market (to avoid exchange-rate noise).
TechUK (CfD AR6, 2012£ unless noted)Germany (EEG auctions)France (CRE auctions)United States (LCOE / PPAs)
Solar PV (ground-mount)£50.07/MWh (AR6) €46–51/MWh (2024–25 avg awards ≈ €46.6–47.6/MWh) €79/MWh (late-2024/early-2025 avg) $35/MWh PPAs (avg, 2023$); LCOE range broader by project/region
Onshore wind£50.90/MWh (AR6) €71–73/MWh (2024 avg awards) €87.6–87.9/MWh (2024–25 avg) $42/MWh LCOE (ref. plant, 2023$)
Offshore wind (fixed-bottom)£58.87/MWh (2012£) new projects; ≈ £82/MWh “today’s money” (ORE Catapult calc). Re-bids at £54.23/MWh (2012£) — (Germany focuses on onshore; offshore via separate framework)Floating tenders ~€86–93/MWh (indicative; tech-neutral comps limited) $117/MWh LCOE (fixed-bottom, ref. site, 2023$)
What this says about UK vs. major competitors
Solar PV: Germany is currently the price pace-setter in Europe with ~€47/MWh awards; UK AR6 solar at ~£50/MWh is competitive but a touch higher (and quoted in 2012£). US utility-scale PPAs average about $35/MWh, reflecting excellent resources, tax credits and scale.
Onshore wind: UK AR6 (~£51/MWh) is sharply competitive against Germany’s ~€71–73/MWh and France’s $42/MWh) is similar/leaner, again helped by scale and incentives.
Offshore wind: UK AR6 fixed-bottom clears at £59/MWh in 2012£ (~£82/MWh in current terms)—strong by global standards and notably below US reference LCOE ($117/MWh). France’s recent results are for floating (not strictly comparable), ~€86–93/MWh.
Notes & caveats (so the comparison stays fair)
Metric differences: UK CfDs are in 2012 pounds; I used ORE Catapult’s conversion to show an indicative “today’s money” view for offshore. EU auctions pay €/MWh; US figures are a mix of LCOE (modeled) and PPAs (contracted). Always be cautious mixing LCOE and auction prices—directionally useful, but not identical products.
Location & grid effects: Interconnection costs, indexation, balancing, and local content rules move numbers by ±10–20% project-to-project.
Recency: All figures are late-2024 to mid-2025 publications/results.